EUR/USD Price Update: Euro Under Pressure as ECB Expected to Cut Rates
- Germany confirms August Harmonized Index of Consumer Prices at 2% YoY.
- Speculative interest awaits United States Consumer Price Index data.
- EUR/USD testing 1.1020 support, aiming to break lower.
The EUR/USD pair is currently trading near its daily low at 1.1027. The US Dollar is showing weakness against other major currencies, but the Euro is struggling to attract investors. The upcoming ECB meeting is expected to lower interest rates, adding pressure on the Euro. Recent data from the Eurozone, especially Germany, has raised concerns about a possible recession, further weakening the Euro.
On the other hand, the US Dollar is also facing challenges. Traders are awaiting the release of the US Consumer Price Index (CPI) data, which is expected to show easing price pressures. Despite this, the index is still projected to be above the Federal Reserve’s target of 2%.
In recent data, Germany confirmed a 2% rise in the Harmonized Index of Consumer Prices (HICP) for August. In the US, the NFIB Business Optimism Index declined to 91.2 in August. Fed officials are scheduled to speak later in the day, but no significant comments on monetary policy are expected before the FOMC meeting next week.
EUR/USD Technical Analysis
On the daily chart, the EUR/USD pair remains bearish, trading below the 20 Simple Moving Average. The 100 and 200 SMAs are below the current level, losing their bullish momentum. Technical indicators are also pointing downwards, suggesting further downside potential.
In the 4-hour chart, the pair is below the 20 and 100 SMAs, with indicators showing bearish signals. The immediate support level is at 1.1020, with resistance at 1.1090.
Support: 1.1020, 1.0975, 1.0930
Resistance: 1.1090, 1.1115, 1.1150
Analysis:
The EUR/USD pair is facing downward pressure as the Eurozone and US economic conditions remain uncertain. The ECB’s expected rate cut and the upcoming US CPI data are key factors influencing the currency pair. Traders should monitor these developments closely to make informed decisions regarding their investments and financial strategies.